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Owner of two room salons under investigation for tax evasion

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State prosecutors said Wednesday they have has began investigations into large room salons (hostess bars) for suspected tax evasion offences and prostitution.

Prosecution sources said that visiting customers drink with hostesses, and if they want sex afterwards they go upstairs to designated rooms using a secret elevator.

Early last month, prosecutors arrested the owner of the nation’s largest room salon YTT on the same charges. The man, nicknamed “room salon king,” allegedly arranged some 88,000 sexual liaisons between customers and hostesses.

The prosecution has expanded its probe to other room salons in southern Seoul since the YTT case was reported.

The 48-year-old owner of two room salons, one in Jamwon-dong, southern Seoul and another in Daechi-dong, also in southern Seoul, is facing charges of evading taxes by manipulating accounting books, according to prosecution sources.

Sales of those bars are equivalent to those of the YTT room salon, the sources said.

jckim@koreatimes.co.kr